Cogent Comms (CCOI) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 8.38%
• Average Volume (3M): 842.59K
• Price to Earnings (P/E): 102.8
• Beta (1Y): 0.54
• Revenue Growth: -3.47%
• EPS Growth: -115.75%
• Country: US
• Employees: 1,899
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): -1.09
• Shares Outstanding: 49,337,310
• 10 Day Avg. Volume: 807,319
• 30 Day Avg. Volume: 842,590
• PEG Ratio: -5.81
• Price to Book (P/B): -5.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.24
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 11.45
• Enterprise Value/Ebitda: 3.55
• 1Y Price Target: $66.63
• Price Target Upside: 38.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 47 Neutral
• Price Target: $47.00 ▼(-2.08%Downside)

The overall score for Cogent Comms is driven by financial instability, as indicated by negative earnings and high leverage. Technical indicators reflect a bearish trend, while valuation metrics offer limited appeal beyond dividend yield. Earnings call insights provide some optimism, yet corporate events suggest ongoing financial restructuring without addressing core profitability challenges.

Positive Factors

Data Center Monetization

Cogent is confident in data center monetization, which is expected to maximize value despite delays.

Revenue Growth Targets

Management has increased its long-term revenue growth targets to 6-8%.

Negative Factors

Dividend and Share Performance

Shares declined by 7.4% following the announcement to cut the typical quarterly dividend growth.

Revenue Performance

Q1 results were lower than expected across the board, with revenue and seasonal SG&A increases pressuring EBITDA.

Cogent Comms Business Overview & Revenue Model

Company Description

Cogent Communications Holdings, Inc. (CCOI) is a multinational internet service provider and is considered one of the largest Tier 1 network providers in the world. The company specializes in providing high-speed internet access, IP transit, and data transport services to small and medium-sized businesses, carriers, and content providers across North America, Europe, and Asia. Cogent's core products include dedicated internet access, virtual private networks, and colocation services, leveraging its extensive fiber network infrastructure.

How the Company Makes Money

Cogent Communications generates revenue primarily through the sale of internet access and related services. The company's key revenue streams include providing dedicated internet access services to businesses and carriers, which involves charging customers for high-speed, reliable internet connections. Additionally, Cogent earns money from its IP transit services, where it offers bandwidth to other internet service providers and content delivery networks, allowing them to connect to Cogent's extensive network. The company also derives income from colocation services, renting out space in its data centers to businesses needing secure and reliable hosting environments for their servers and networking equipment. Strategic partnerships and long-term contracts with large enterprises and telecom carriers also contribute significantly to Cogent's revenue, ensuring a steady and predictable income stream.

Cogent Comms Financial Statement Overview

Summary

Cogent Comms faces significant financial challenges, with inconsistent revenue growth, negative EBIT and net income, high leverage risk due to a high debt-to-equity ratio, and negative free cash flow. These issues highlight profitability, leverage, and liquidity concerns.

Income Statement

Cogent Comms has shown inconsistent revenue growth with a decline in the most recent TTM period. The gross profit margin decreased, indicating potential cost pressures. The negative EBIT and net income highlight profitability challenges, though the EBITDA margin is positive, showing some operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio due to low equity, presenting significant leverage risk. With negative equity, the ROE cannot be calculated, indicating financial distress. The equity ratio also reflects a heavy reliance on debt financing, which may constrain financial flexibility.

Cash Flow

Free cash flow is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is low, suggesting operational inefficiencies. The negative free cash flow to net income ratio further emphasizes liquidity concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.02B	1.04B	940.92M	599.60M	589.80M	568.10M
	Gross Profit
332.61M	394.27M	396.69M	371.45M	363.46M	348.95M
	EBIT
-169.46M	-197.61M	-129.33M	113.96M	119.23M	106.92M
	EBITDA
188.08M	161.29M	1.56B	208.43M	201.08M	190.47M
	Net Income Common Stockholders
-190.81M	-204.07M	1.27B	5.15M	48.19M	6.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.81M	198.49M	75.09M	223.78M	319.61M	371.30M
	Total Assets
3.12B	3.17B	3.21B	1.01B	984.56M	1.00B
	Total Debt
2.36B	2.34B	1.83B	1.36B	1.26B	1.21B
	Net Debt
2.21B	2.14B	1.75B	1.13B	941.67M	839.96M
	Total Liabilities
2.98B	2.95B	2.60B	1.53B	1.36B	1.29B
	Stockholders Equity
142.84M	222.85M	609.56M	-518.63M	-373.10M	-293.17M
Cash Flow		Free Cash Flow
-203.72M	-203.64M	-112.29M	94.74M	100.34M	84.37M
	Operating Cash Flow
8.49M	-8.64M	17.34M	173.71M	170.26M	140.32M
	Investing Cash Flow
-62.55M	21.49M	76.73M	-78.97M	-69.92M	-55.95M
	Financing Cash Flow
72.46M	105.92M	-257.85M	-144.85M	-140.82M	-116.00M

Cogent Comms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOI, the sentiment is Negative. The current price of 48 is above the 20-day moving average (MA) of 47.68, below the 50-day MA of 50.40, and below the 200-day MA of 67.30, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 45.88 is Neutral, neither overbought nor oversold. The STOCH value of 72.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCOI.

Cogent Comms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZD	72 Outperform	$1.44B	21.15	4.12%	―	3.24%	36.80%
GSAT	64 Neutral	$2.76B	―	-18.66%	―	14.55%	-81.21%
SHEN	64 Neutral	$764.71M	―	-4.30%	0.72%	21.68%	-1010.29%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
SBGI	59 Neutral	$932.95M	6.79	34.07%	7.46%	11.62%	―
TDS	54 Neutral	$3.79B	―	-0.97%	0.47%	-5.14%	78.63%
CCOI	47 Neutral	$2.40B	102.75	-59.30%	8.38%	-3.47%	-115.75%

Cogent Comms Corporate Events

Cogent Comms Prices $600M Senior Secured Notes

On June 3, 2025, Cogent Communications Holdings, Inc. announced that its subsidiaries have priced an offering of $600 million in senior secured notes due 2032, with an interest rate of 6.500%. The proceeds from the offering will be used to redeem existing notes due 2026 and for general corporate purposes. The offering is expected to close on June 17, 2025, subject to customary conditions, and highlights Cogent’s strategic financial management to optimize its debt structure.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.

Cogent Comms Announces $600M Senior Secured Notes Offering

On June 2, 2025, Cogent Communications Holdings, Inc. announced that its subsidiaries, Cogent Communications Group, LLC and Cogent Finance, Inc., plan to offer $600 million in senior secured notes due 2032 through a private placement. The proceeds from this offering are intended to redeem existing $500 million senior secured notes due 2026 and for general corporate purposes. The issuance aims to strengthen Cogent’s financial position by reducing its consolidated leverage ratio, which would be adjusted to 4.24x post-offering, enhancing its market competitiveness.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.

Cogent Comms Annual Meeting Decisions Impact Governance

On May 7, 2025, Cogent Comms held its Annual Meeting in Washington, DC, where stockholders voted on several key proposals. The meeting resulted in the election of board members, approval of amended bylaws to adjust board size, ratification of Ernst & Young LLP as auditors, and approval of executive compensation and a company plan. These decisions are expected to impact the company’s governance and operational strategies moving forward.

Cogent Comms Prices $174.4 Million IPv4 Revenue Notes

On April 4, 2025, Cogent Communications Holdings, Inc. announced that a special-purpose, bankruptcy remote, indirect wholly owned subsidiary priced $174.4 million of secured Internet Protocol version 4 (IPv4) address revenue term notes, with an anticipated repayment term of five years. The notes are secured by Cogent’s IPv4 addresses and customer accounts, and the proceeds will be used for general corporate purposes. The transaction is expected to close around April 11, 2025, subject to closing conditions, and is offered to qualified institutional buyers and certain accredited investors in compliance with U.S. securities regulations.